The marginal propensity to save Assume that initially G is $100 and equilibrium real GDP demanded is $1,000 If the multiplier is 4 and G increases to $200, real GDP demanded will increase a by $100 b by $2,000 c by $1,000 d to $1,400 e to $2,000   If autonomous net taxes decline by $40 billion and the MPC = 075, then equilibrium real GDP demanded a declines by $120 billion b increases by $120 billion c declines by $160 billion d increases by $160 billion e increases by $40 billion   Assume autonomous net taxes rise by $400; the marginal propensity to consume = 3/4 Net exports, planned investment, taxes, and government purchases are autonomous and remain fixed As a result, saving will initially a fall by $400 b rise by $300 c remain unchanged d fall by $100   e rise by $100